Forex Technical Analysis – EUR/USD Entry Opportunity at the Long Term Trend Line
March 16th, 2010 Posted in Technical Analysis
Forex traders that are looking for opportunities to enter into the market at a good time may find one in the EUR/USD. The forex technical analysis of the EUR/USD daily chart shows the price may have risen to a level close to the tend line that makes it attractive to enter.
The daily chart shows the price has appreciated to the long term downward sloping trend line that began on December 3rd. Currently the pair is experiencing a period of consolidation over the past three weeks. The Fibonacci retracment shows the pair has fallen as low as the 61.8% retracement level where it has been range trading as high as the 50% retracement level As such; The currency pair is now trading at 1.3750. This is still below the 50 day moving average.
Now may be a good opportunity to go short as the price of the EUR/USD is currently close to the downward sloping trend line. Selling near a downward sloping trend line can be an excellent entry point into the market.
However, in the event the pair should break the trend line and continue to rise past the 50% retracement level at 1.3800; the trade should be closed with a limited loss.
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Tags: Forex Trading, Moving Average, Technical Analysis, trend line
